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Siemens boss sacked after profit warnings

Siemens boss sacked after profit warnings
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Who is going to get the top job at Siemens? That is the question after the announcement that Chief Executive Peter Loescher is to leave the company following the latest profit warning from one of Germany’s largest industrial conglomerates.

In a statement at the weekend, Siemens said another member of the executive board would be named as CEO, but did not say who.

An announcement is expected on Wednesday.

Siemens finance chief Joe Kaeser is reportedly favoured as the replacement for Loescher.

The 55-year-old Austrian, who has failed to deliver on his promises of growth and profitability, will be paid for the remaining four years of his contract – 6.7 million euros, plus 2.2 million euros for his pension plan, which already stands at 15 million euros.

His current contract was renewed just last year.

Recent problems at Siemens include late delivery of high-speed trains for the German national railways and delays in completing offshore wind farms.

Analaysts said that if Kaeser does get the job, they expect him to quickly tighten the reins on costs at Siemens and sell more non-core businesses such as those that make rail technology or healthcare software.

The company – whose products range from gas turbines to high-speed trains and ultrasound machines – has issued two profit warnings this year. The second particularly rattled shareholders when its margin target was abruptly abandoning via a brief statement that left investors clamouring in vain for more information.